VeChain Supply Chain Transparency for Luxury Goods and Logistics
Sector: Secondary sector · Industry: Textile and clothing industry · Organisation: VeChain, Givenchy, H&M (COS) · Maturity level: Production
VeChain uses VeChainThor blockchain technology to create transparency and traceability in global supply chains. The solution is already implemented in production environments with partners like Walmart China, BMW and LVMH and has processed hundreds of millions of transactions for enterprise customers since 2015. By combining blockchain technology with IoT sensors, companies can seamlessly document every step of their supply chain and protect against counterfeiting.
Documentation status
- Project status: Production
- Evidence: Evidence high
- Editorial review: Ufuk Avci, 15 April 2026
Description
VeChain (Singapore, CEO Sunny Lu) is an enterprise blockchain focused on supply chain transparency. In the fashion sector, collaboration began in 2018 with H&M subsidiary Arket to verify the organic manufacturing process of wool hats. In 2020, H&M label COS integrated VeChain Toolchain for comprehensive supply chain traceability.
VeChain uses two tokens: VET (governance/value transfer) and VTHO (gas for transactions). The Toolchain system is enterprise-ready: companies can assign QR codes or NFC chips to their products; every movement in the supply chain is documented on-chain; customers scan the tag and see complete sustainability information. DNV GL (international classification society, now DNV) developed MyStory on VeChainThor — a white-label traceability platform. COS pilot: customers in a shopping centre in Guangzhou were the first to discover COS products with MyStory tags; COS can thus show material origin, manufacturing images and videos, as well as sustainability certificates. Givenchy partnership: NFC chips in leather goods and sneakers for authenticity verification. VeChain 2021: launch of a digital carbon footprint SaaS service on VeChainThor. VeChain 2026 Manifesto: strategic roadmap for further growth as the most sustainable enterprise blockchain.
Perspectives
B2B — organisations perspective
Fashion brands can implement complete supply chain traceability with the VeChain Toolchain — QR/NFC integration, consumer app for transparency marketing, CSRD-compliant sustainability data.
B2C — consumers perspective
Fashion consumers can use an app scan to trace where their clothing comes from, which materials were used, and whether sustainability certificates are available — transparency instead of marketing promises.
Employees perspective
Supply Chain Managers receive intuitive dashboards for monitoring complex supply networks in real time. IT teams need to familiarise themselves with new blockchain integration tools and adapt existing ERP systems accordingly.
Benefits
General
- Companies achieve complete transparency and traceability of their supply chains through immutable blockchain records.
- Automation of compliance checks reduces administrative costs and significantly accelerates business processes.
- Consumer trust is strengthened through verifiable product authenticity and transparent provenance evidence.
B2B — organisations
- The integration enables cost savings through automated inspection processes and reduces losses from product counterfeiting and fraud.
Employees
- Employees in supply chain management receive precise real-time data for informed decisions and can proactively identify issues.
Challenges
General
- Integration into existing ERP and CRM systems requires significant technical expertise and careful planning of system architecture.
- All actors along the supply chain must be willing to collaborate and provide transparent data.
B2B — organisations
- Companies must invest in training their employees and adapting existing business processes.
Employees
- IT teams need specialised blockchain knowledge and must successfully implement complex integration projects.
Technology foundation
VeChain is based on the VeChainThor blockchain, which is specifically developed for enterprise applications and uses a proof-of-authority consensus. The technology combines a dual token system of VET and VTHO with IoT integration and offers high scalability for multi-million transaction volumes in industry.
Implementation examples
Walmart China Supplier Traceability Platform
Walmart China wanted to strengthen consumer trust in food safety while improving the efficiency of their supply chain processes. The company sought a solution for rapid identification of issues in the supply chain and to reduce food waste.
Walmart China implemented VeChain for full traceability of their suppliers and products.
Walmart China uses the VeChainThor Blockchain to implement a comprehensive supplier traceability platform that documents every step of the food supply chain. The system enables the retail giant to track the origin of products in real time and monitor quality standards. By integrating IoT sensors, temperature, humidity, and other critical parameters can be continuously monitored during transport.
The system addresses challenges in food safety, rapid identification of contamination sources, and reduction of fraud in the supply chain. Through seamless documentation, problems can be identified within seconds instead of days.
Tags
Supply chain, Blockchain, Transparency, Authentication, IoT integration